Oil and gas: hydraulic fracturing.

(1) Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisor, referred to as the supervisor, supervises the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field regarding safety and environmental damage. Existing law requires an operator of a well, before commencing the work of drilling the well, to obtain approval from the supervisor or a district deputy. Violation of these provisions is a misdemeanor. This bill would define "hydraulic fracturing" in oil and gas operations and would prohibit hydraulic fracturing, as well as the use of clean freshwater for purposes of hydraulic fracturing, on any oil or gas well, if the well is located within 4,000 feet from a home, public building, school, surface waters, underground source of drinking water, or any other sensitive human or environmental resource in the state from an aquifer, until the completion of a report, as specified, and a determination is made that hydraulic fracturing can be conducted without a risk to the public health, welfare, environment, or the economy of the state. The bill would also express the intent of the Legislature to, among other things, protect the public health and welfare, natural and environmental resources and economic interest of the state. (2) Existing law establishes the Natural Resources Agency consisting of various entities, departments, and boards. Existing law also establishes the California Environmental Protection Agency consisting of various entities, departments, and boards. This bill would require the Secretary of the Natural Resources Agency and the Secretary for Environmental Protection to (A) convene an advisory committee, by July 1, 2014, to develop a report relating to hydraulic fracturing, as specified; (B) to complete the report on or before January 1, 2018, and provide a copy to the Governor and the Legislature on or before that date; and (C) to make a determination, as specified, not later than January 1, 2019, as to whether and under what conditions hydraulic fracturing is permitted within the state. This bill would prohibit hydraulic fracturing in certain wells, as well as the use of freshwater for hydraulic fracturing purposes in those wells, the violation of which would be a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.